Brightpoint Reports Fourth Quarter and Year End 2006 Financial Results.

For the Fourth Quarter of 2006:

* Record quarterly revenue of $677.2 million, an increase of 7% from the fourth quarter of 2005.

* Income from continuing operations of $10.0 million ($0.20 per diluted share) compared to $11.8 million ($0.23 per diluted share) in the fourth quarter of 2005. Income from continuing operations included $1.9 million of non-cash stock based compensation expense in the fourth quarter of 2006 compared to $1.2 million in the fourth quarter of 2005.

* Net income of $9.7 million ($0.19 per diluted share) compared to $8.9 million ($0.18 per diluted share) in the fourth quarter of 2005.

* 15.1 million wireless devices handled, another quarterly record. This represents an increase of approximately 6% from the fourth quarter of 2005.

* EBITDA of $15.6 million in the fourth quarter of 2006 as compared to $15.7 million in the fourth quarter of 2005.

For the Year Ended December 31, 2006:

* Revenue of $2.4 billion, an increase of 13% from 2005.

* Income from continuing operations of $36.2 million ($0.72 per diluted share) compared to $31.9 million ($0.64 per diluted share) in 2005. Income from continuing operations included $6.0 million of non-cash stock based compensation expense in 2006 compared to $2.8 million in 2005.

* Net income of $35.6 million ($0.70 per diluted share) compared to $10.4 million ($0.21 per diluted share) in 2005.

* 53.5 million wireless devices handled, an increase of approximately 27% from 2005, driven by 34% growth in fee-based logistic services unit volumes and a 9% increase in distribution unit volumes.

* EBITDA of $60.7 million in 2006 as compared to $35.0 million in 2005.

PLAINFIELD, Ind. -- Brightpoint, Inc. (NASDAQ:CELL) reported its financial results for the fourth quarter and year ended December 31, 2006. Unless otherwise noted, amounts pertain to the fourth quarter of 2006. In May 2006, the Company's Board of Directors approved and the Company effected a 6-for-5 common stock split in the form of a 20% stock dividend. Per share amounts for all periods presented in this report have been adjusted to reflect the 6-for-5 common stock split.

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"Our fourth quarter revenue of $677 million and over 15 million wireless devices handled were all time quarterly records," stated Robert J. Laikin, Brightpoint's Chairman of the Board and Chief Executive Officer. "The global demand for wireless devices continued to be healthy as reflected in Q4 with a sell-in estimate of over 280 million units. In the first quarter of 2007, I expect to see a normal seasonal sequential decline in the range of 10% to 15% for the industry. In 2006, I believe approximately 975 million devices were shipped on a global basis. I remain bullish on the global wireless device industry and believe the wireless devices sell-in range for 2007 to be 1.1 billion to 1.2 billion units, representing solid double digit growth year-over-year. We remain optimistic on Brightpoint's growth prospects in 2007. Last year Brightpoint was awarded several major contracts, and 2007 will be a year of implementation and integration. Our business development efforts remain strong in 2007 and we believe that we are well positioned in the value chain to take advantage of the many global opportunities within the wireless industry."

"I am very pleased with our record levels of revenue and units handled as well as with our strong earnings performance in the fourth quarter of 2006," said Tony Boor, Brightpoint's Chief Financial Officer. "In 2007 we will focus on executing upon the multiple new opportunities we were awarded in 2006. We will also pursue additional strategic initiatives in an effort to continue our growth trends and to build upon our global brand equity."

Brightpoint experienced a year-over-year increase in wireless devices handled of 6% during the fourth quarter of 2006 and year-over-year growth in revenue of 7%. Wireless devices handled through logistic services were 76% of total wireless devices handled for both the fourth quarter of 2006 and the fourth quarter of 2005.

For the fourth quarter of 2006, our Americas, Asia-Pacific and Europe divisions experienced year-over year growth in devices handled of 4%, 15% and 25%, respectively. The growth in wireless devices handled in our Americas division was primarily driven by increased demand as a result of market growth experienced by current logistic services customers, which was partially offset by lower volume with our primary network operator customer in Colombia. The increase in wireless devices handled in our Asia-Pacific division was primarily due to increased handset distribution units sold through our Brightpoint Asia Limited business as a result of improved product availability at competitive prices. The increase in wireless devices handled in our Europe division was due to increased demand for and availability of branded converged wireless devices as well as sales of devices resulting from our entry into Russia during the second quarter of 2006. In addition, we believe our Europe division benefited from market share gains in Sweden.

Gross margin for the fourth quarter of 2006 decreased to 6.2% from 6.9% in the fourth quarter of 2005. A 3.6 percentage point increase in gross margin from logistic services was more than offset by a 1.0 percentage point decrease in gross margin from our distribution business. The 3.6 percentage point increase in logistic services gross margin was due primarily to improved profitability of our repair business in India. The 1.0 percentage point decrease in distribution gross margin was primarily due to a decrease in several markets as a result of a shift in product mix to lower margin end-of-life products and refurbished products during the fourth quarter of 2006 compared to the fourth quarter of 2005. Sequentially, gross margin improved 0.4 percentage points from 5.8% in the third quarter of 2006. This increase in gross margin was driven by an 8.9 percentage point sequential increase in logistic services gross margin resulting from increased volume in our Americas division and improved profitability of our repair business in India.

Selling, general and administrative (SG&A) expenses increased $2.4 million or 9% from the fourth quarter of 2005. As a percent of revenue, SG&A expenses increased to 4.4% in the fourth quarter of 2006 from 4.3% in the fourth quarter of 2005. The increase in SG&A expenses was primarily due to a $1.4 million increase in personnel costs largely in support of overall growth in volumes, a $0.7 million increase in non-cash stock based compensation including the effects of adopting SFAS 123(R), a $0.7 million increase to support our investment in Advanced Wireless Services (AWS) in the Americas and a $0.8 million increase related to the acquisition of Persequor Limited during the first quarter of 2006, partially offset by a $1.3 million decrease in incentive compensation. Sequentially, SG&A expenses increased $5.3 million or 22% from the third quarter of 2006 due to a $1.8 million increase in incentive compensation and a $0.7 million increase in non-cash stock based compensation as a result of achieving certain strategic targets as well as a $1.1 million increase in personnel costs primarily in support of overall growth in volumes.

Operating income from continuing operations (Operating Income) was $12.0 million, a decrease of 26% from the fourth quarter of 2005. The year-over-year decrease in Operating Income for the quarter was driven by a $1.8 million decrease in gross profit combined with a $2.4 million increase in SG&A expenses.

The effective income tax rate in the fourth quarter of 2006 was 21.0% compared to 23.8% in the fourth quarter of 2005. The decrease in the effective income tax rate was the result of the recognition of certain deferred tax assets not previously recognized, the release of a contingency reserve for which the statute of limitations expired and the release of a contingency reserve for which the potential expense was no longer deemed probable.

Cash and cash equivalents (unrestricted) were $54.1 million at December 31, 2006, a decrease of $49.5 million from September 30, 2006. Our liquidity (unrestricted cash and unused borrowing availability) was approximately $129.8 million as of December 31, 2006 compared to $202 million as of September 30, 2006. Cash conversion cycle days increased to 22 days for the fourth quarter of 2006 from 11 days for the third quarter of 2006. The increase in cash conversion cycle days as well as the decrease in cash and liquidity was due to vendor payments related to significant purchases of wireless devices near the end of September and December 2006 in connection with the expanded global relationship with a major original equipment manufacturer. This expanded global relationship is still in its launch and development stage, and we intend to improve our liquidity and cash conversion cycle as the related new sales channels are solidified and as the new distribution model is rationalized.

Brightpoint, Inc (NASDAQ:CELL) is a global leader in the distribution of wireless devices and the provision of customized logistic services to the wireless industry. In 2006, Brightpoint handled 53.5 million wireless devices globally. Brightpoint's innovative services include distribution, channel development, fulfillment, product customization, eBusiness solutions, and other outsourced services that integrate seamlessly with its customers. Brightpoint's effective and efficient platform allows its customers to benefit from quickly deployed, flexible, and cost effective solutions. Additional information about Brightpoint can be found on its website at www.brightpoint.com, or by calling its toll-free Information and Investor Relations line at 877-IIR-CELL (877-447-2355).

Certain information in this press release may contain forward-looking statements regarding future events or the future performance of the Company. These statements are only predictions and actual events or results may differ materially. Please refer to the documents the Company files, from time to time, with the Securities and Exchange Commission; specifically, the Company's most recent Form 10-K and Form 10-Q and the cautionary statements contained in Exhibit 99.1 thereto. These documents contain and identify important risk factors that could cause the actual results to differ materially from those contained in or implied by these forward-looking statements. These risk factors include, without limitation, uncertainties relating to customer plans and commitments, including, without limitation, (i) loss of significant customers or a reduction in prices we charge these customers; (ii) possible adverse effect on demand for our products resulting from consolidation of mobile operator customers; (iii) our ability to increase volumes and maintain our margins; (iv) dependence upon principal suppliers and availability and price of wireless products; (v) possible difficulties collecting our accounts receivable; (vi) our ability to expand geographically on a satisfactory basis, through acquisition or otherwise; (vii) uncertainty regarding future volatility in our Common Stock price; (viii) uncertainty whether wireless equipment manufacturers and wireless network operators will continue to outsource aspects of their business to us; (ix) our reliance upon third parties to manufacture products which we distribute and reliance upon their quality control procedures; (x) our operations may be materially affected by fluctuations in regional demand and economic factors; (xi) ability to respond to rapid technological changes in the wireless communications and data industry; (xii) access to or the cost of increasing amounts of capital, trade credit or other financing; (xiii) risks of foreign operations, including currency, trade restrictions and political risks in our foreign markets; (xiv) effect of hostilities or terrorist attacks on our operations; (xv) investment in sophisticated information systems technologies and our reliance upon the proper functioning of such systems; (xvi) ability to borrow additional funds; (xvii) our ability to meet intense industry competition; (xviii) ability to manage and sustain future growth at our historical or industry rates; (xix) certain relationships and financings, which may provide us with minimal returns or losses on our investments; (xx) the impact that seasonality may have on our business and results; (xxi) ability to attract and retain qualified management and other personnel, cost of complying with labor agreements and high rate of personnel turnover; (xxii) ability to protect our proprietary information; (xxiii) our significant payment obligations under certain lease and other contractual arrangements; (xxiv) ability to maintain adequate insurance at a reasonable cost; (xxv) possible adverse effects of future medical claims regarding the use of wireless handsets; (xxvi) the potential issuance of additional equity, including our common shares, which could result in dilution of existing shareholders and may have an adverse impact on the price of our common shares; and (xxvii) existence of anti-takeover measures. Because of the aforementioned uncertainties affecting our future operating results, past performance should not be considered to be a reliable indicator of future performance, and investors should not use historical trends to anticipate future results or trends. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date these statements were made. The words "believe," "expect," "anticipate," "intend," and "plan" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on any of these forward-looking statements, which speak only as of the date that such statement was made. We undertake no obligation to update any forward-looking statement.

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EBITDA is a non-GAAP financial measure. Management believes EBITDA provides it with an indicator of how much cash the Company generates, excluding non-cash charges and any changes in working capital. Management also reviews and utilizes the entire statement of cash flows to evaluate cash flow performance.

Cash Conversion Cycle Days

Management utilizes the cash conversion cycle days metric and its components to evaluate the Company's ability to manage its working capital and its cash flow performance. Cash conversion cycle days and its components for the quarters ending December 31, 2006 and 2005, and September 30, 2006 were as follows:

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